Unified Payments Interface (UPI), the real-time payment system developed by NPCI, has witnessed significant rule changes as we step into 2024.
These alterations bring adjustments to transaction limits, the introduction of UPI for the Secondary Market, and an expansion of services to feature phones, marking a new phase in India’s digital payment landscape.
1. Enhanced Transaction Limits for Critical Sectors:
NPCI has modified the UPI transaction limits, setting a daily cap of Rs 1 lakh for general transactions. Notably, high-value payments in critical sectors like hospitals and education have seen a considerable increase, with the limit raised to Rs 5 lakh.
2. UPI ATMs for Cash Withdrawals:
In collaboration with Hitachi Payment Services, NPCI has rolled out UPI ATMs. This innovative approach allows users to withdraw cash using UPI apps, eliminating the need for a physical debit card. The initial launch has taken place, with plans for further deployment nationwide.
3. Safeguarding Users with a Cooling Period:
The Reserve Bank of India (RBI) has proposed a four-hour cooling period for users initiating payments of Rs 2,000 or more to a new recipient.
This measure aims to prevent financial fraud by providing users with a window to reverse or modify transactions within the specified timeframe.
4. UPI for Secondary Market – Beta Phase:
NPCI introduces ‘UPI for Secondary Market’ in its Beta phase, enabling limited pilot customers to block funds post-trade confirmation.
This facilitates the settlement of payments on a T1 basis through Clearing Corporations, contributing to smoother transactions in the secondary market.
5. Deactivation of Inactive UPI IDs:
To maintain active UPI IDs, payment apps like PhonePe, Google Pay, and PayTM are mandated to verify and ensure regular usage.
UPI IDs inactive for a year will face deactivation. Users are advised to make at least one payment promptly to avoid the deactivation of their UPI IDs.
In parallel, UPI services have expanded to feature phones, a move promoting financial inclusion. This extension ensures that even vendors in rural areas can accept digital payments without the necessity of a smartphone, aligning with the goal of making digital transactions accessible to a broader demographic.
(Except for the headline, this story has not been edited by The Kashmir Monitor staff and is published from a syndicated feed.)